COUNCIL Tax is going up by almost five per cent across Wigan borough.

The main reason behind the higher than inflation increase is "unavoidable pressures" on social services say Wigan Council chiefs.

Council Leader Lord Peter Smith said: "By far the greatest concern has been social services, where there are huge pressures on the services for children and young people and the elderly.

"The extra spending allowed by the government was 2.6 per cent but we are having to increase spending by three times that figure to meet our statutory duties."

Although the 4.9 per cent rise could mean some households will have to pay almost £100 more, the borough still has an overall Council Tax likely to be lower than in all its neighbouring areas, with the exception of Warrington.

The amount Leigh householders pay in Council Tax will vary according to the value of their home -- with properties being placed into eight valuation bands, the least expensive properties being in band A and the most expensive in band H.

However, a range of discounts, exemptions and reductions are available, for example single person households get a 25 per cent discount.

In real terms, band A households (properties valued up to £40,000) will have to pay -- including fire and police precepts -- about £32 more as their tax bill rises from £640.35 to £672.37.

Increase of £40

Residents of band D homes (valued between £68,001 -- £88,000) can expect a £1,008.55 Council Tax demand, which works out as an increase of £40.

While band H households will have to pay almost £100 extra as their new council tax bill amounts to £2,017.10.

Lord Smith said social services and education were the two most serious pressures on the budget.

Along with local authorities across the country, Wigan's social services department is being stretched by a growing number of elderly people needing the services.

There are about 60,000 elderly people in the borough, 10,000 of whom are over the age of 80 -- a big proportion of the borough's 310,000 population.

Spending on schools also gave finance chiefs a headache as extra spending allowed in the settlement was only 2.9 per cent compared to a 3.5 per cent teachers pay increase.

Lord Smith said they had passed on all the money they were expected to to schools.

"We want schools to understand we are doing what we can to keep education standards up."

The budget includes £2.6 million of savings which will provide £600,000 more than the increase allowed for by the government for schools and an extra £900,000 to cover pressures in social services.

In addition £250,000 a year will be saved from the closure of 21 cash offices -- a move which will enable tax payers to pay their bills at post offices and PayPoint facilities in Co-op and other stores.

Overall budget

Finance bosses expect to raise £93 million from the hybrid personal and property tax. Although this sounds like a massive figure it amounts to a small proportion of the council's overall budget with 80 pc of local government expenditure being funded by government grants.

£84 million of Council Tax money will be pumped into services while fire and police services will take a total of £9 million in precepts.

More than half the money (53 per cent) will be spent on education, social services will receive 20 per cent, and the environment -- which includes highways and planning -- has been allocated 11 per cent.

The remaining amount will be distributed between leisure and culture, public transport, community safety and administration.

The rise will be formally confirmed on March 6 at a special Council meeting.